[randyrand]

This would be counted as a loss for this years tax purposes. So they will pay fewer taxes this year.

[sokoloff]

Settlements that are classified as penalties are generally not tax deductible. Settlements that are classified as remedial/restorative generally are.

This was no doubt a topic of discussion and planning before the settlement was entered into. The article repeatedly refers to it as a "penalty", but it's unclear if that's colloquial or specifically informed language.